Tata Steel Long Products Ltd (TSLP), a subsidiary of Tata Steel, on Thursday said it has increased its stake in Neelachal Ispat Nigam Ltd (NINL) for Rs 300 crore.

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The company acquired 4,68,75,000 equity shares of Rs 10 each at a premium of Rs 54 per share of Neelachal Ispat Nigam Ltd, a subsidiary of TSLP.

The proposed funding will be utilised towards the initial working capital and capex requirement of the company including the start-up of an iron and steel plant at Kalinganagar, repayment/prepayment of liabilities and for other general corporate purposes.

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Neelachal Ispat Nigam Ltd has a 1.1 million tonne per annum (MTPA) integrated iron and steel plant at Kalinganagar Odisha, along with iron ore mines with a reserve of 90 million tonne.

NINL was incorporated on March 27, 1982, to set up an integrated steel plant to undertake the manufacturing and sale of steel products. NINL initially set up a 1.1 MTPA blast furnace in 2002 to produce pig iron. Subsequently, other supporting facilities like a sinter plant, coke oven plant, power plant, etc. were commissioned.

TSLP in January this year won the bid to acquire a 93.71 percent stake in NINL at an enterprise value of Rs 12,100 crore, leaving behind the likes of a consortium of Jindal Steel and Power Ltd, Nalwa Steel and Power Ltd, and JSW Steel Ltd.

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